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Deepti Sri · · 1 min readByteDance cuts hundreds of jobs amid China’s curbs on after-school tutoring
“TikTok owner ByteDance has laid off hundreds of employees as the social giant shuts down a significant part of its online education businesses to comply with Beijing’s new regulatory regime for the after-school tutoring industry,” Bloomberg reported.
Details:
- Hundreds of ByteDance employees working on edtech products like Guagua Long, Qingbei, and GoGoKid will reportedly be laid off with compensation.
- As part of the structural change, GoGoKid, a one-on-one English tutoring app, will shut down completely. Meanwhile Guagua Long and Qingbei will shift their focus toward coding and art, among other things.
Dive deeper:
- The job cuts come after Beijing banned private firms that teach school subjects from earning profits and raising capital, triggering a sell-off that wiped out over US$1 trillion in value from Chinese equities.
- Recently, ByteDance founder Zhang Yiming resigned as the legal representative of at least three affiliated companies. This came months after he announced that he would step down as the chief executive of the country’s biggest tech unicorn by the end of this year.
Editing by Collin Furtado and Arpit Nayak
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